Available online at www.sciencedirect.

com

ScienceDirect
Procedia Economics and Finance 37 (2016) 170 175

FIFTH INTERNATIONAL CONFERENCE ON MARKETING AND RETAILING (5TH

INCOMaR) 2015

A Conceptual Model of Interactive Hotel Website: The Role of

Perceived Website Interactivity and Customer Perceived Value
Toward Website Revisit Intention
Dahlan Abdullaha,*, K. Jayaramanb, Saiful Bahri Mohd Kamala
a
Faculty of Hotel and Tourism Management, Universiti Teknologi MARA Pulau Pinang, 13500 Permatang Pauh, Penang, Malaysia
b
Graduate School of Business, Universiti Sains Malaysia, 11800 Gelugor, Penang, Malaysia

Abstract

Malaysian hotel websites have received many online visitors but failed to convert it into online booking. Based on a synthesis of
literature, this article illustrates a conceptual business model to enhance customer intention to revisit hotel websites to book for
hotel rooms. The conceptual model proposes that customer perception on hotel website interactivity influences customer
perceived value and intention to revisit the hotel website in the future. This article contributes to the existing body of knowledge
by highlighting the importance of each dimension of perceived website interactivity in hotel sector. Its applications in the
hospitality business and implications for future research were also discussed.

2016
2016The
TheAuthors.
Authors.Published
PublishedbybyElsevier
ElsevierB.V.
B.V.This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Faculty of Business Management, Universiti Teknologi MARA.
Peer-review under responsibility of Faculty of Business Management, Universiti Teknologi MARA
Keywords: Perceived interactivity; Perceived value; Revisit intention; Online booking; Hotel website

1. Introduction

Hospitality management scholars demonstrated that online reservation tools can improve financial performance
of hospitality businesses (Sanchez & Satir, 2005). As further evidence, Guo, Ling, Yang, Li, and Liang (2013)
_________

* Corresponding author. Tel.: +60-164216199

E-mail address: dahla707@ppinang.uitm.edu.my

2212-5671 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Faculty of Business Management, Universiti Teknologi MARA
doi:10.1016/S2212-5671(16)30109-5
 Dahlan Abdullah et al. / Procedia Economics and Finance 37 (2016) 170 175 171

claimed that dynamic pricing strategy through effective use of online booking system benefits both hoteliers and
customers. In addition, Tso and Law (2005) also pointed out that effective management of online market could help
hoteliers to capture a high-yield business. Unfortunately, Malaysian hotel customers prefer traditional method of
room reservation (Abu Bakar & Hashim, 2008). Travellers in Malaysia, Indonesia and Thailand are more likely to
go online merely to browse (Nielsen.com, 2014). They used the Internet just for travel information search but did
not complete the booking process through hotel website. In support, a study revealed that only 22% of Malaysia
Internet user used Internet for tours or hotel reservation (Kamaruzaman & Handrich, 2010). For hoteliers, this brings
to the need to better understand the factors influencing hotel website usage. For instance, by understanding the
determinants of customers intention to revisit hotel website, hoteliers could maximize online hotel booking
adoption. Therefore, research to understand the factors influencing customer intention to revisit hotel booking
website is needed.
Most of the literature on customer website adoption were written in the context of general online stores and
studied in western countries (Kim, 2011; Yoo, Lee, & Park, 2010). However, the literature on this topic pertaining to
Asias tourism and hospitality industry is rather limited. Though some studies attempted to investigate the Internet
related variables (e.g. convenience, usefulness, and attractiveness) as determinants of online hotel booking website
adoption (Abu Bakar & Hashim, 2008; Li-Ming & Wai, 2013), research to understand the role of perceived hotel
website interactivity toward website revisit intention has been ignored. Moreover, fewer studies have investigated
the mediating role of customer perceived value in bridging the relationship. Therefore, this article proposes a
conceptual business model to investigate the role of perceived website interactivity toward hotel website revisit
intention through customer perceived value as mediator variable.
To this end, the present article is organized under four sections. The next section provides elaborations on the
proposed predictors for hotel website revisit intention. The proposed conceptual model and related propositions are
given in section 3. Finally, this article ends with conclusions and suggestions for future research in section 4.

2. Literature review

2.1 Perceived website interactivity

One of the advantages of Internet is its potential for interactivity. Hence, the concept of interactivity has received
much interest from scholars in various disciplines (Kim, 2011). However, this article adopted Steuer's (1992)
definition of interactivity, the extent to which users can participate in modifying the form and content of a mediated
environment in real time because it is the most cited work (Mollen & Wilson, 2010, p.920). In literature, the most
common components of interactivity are two-way communication, synchronicity, and controllability (Mollen &
Wilson, 2010). In this article, the two-way communication is conceptualized as the two-way information flow which
enable user to respond back (Kim, 2011). Synchronicity refers to the sites ability to provide users with fast
response, real-time feedback, and the messages and transactions processing speed (Yoo et al., 2010). Controllability
or user control is another fundamental element of interactivity construct. It is conceptualized as user input and
choice capability (Yoo et al., 2010), in which user able to choose the timing, content and sequence of
communications (Dholakia, Zhao, Dholakia, & Fortin, 2001). Other than these three core constructs, sociability is a
newly emerging component of interactivity. It represents the sites capability to allow users to connect with other
people through chat rooms, blogs and social networking tools (Macias, 2003). Although most businesses may be
unable to provide live conversation among customers and between customers and salespeople, many have attempted
to allow their customers to play an active personality and achieve social value by interacting with other customers
on their website. In addition, customizability has also not been proposed in the previous studies on interactivity. It
reflects the extent to which products and/or services can be tailored to meet the unique requirements of each user
(Dholakia et al., 2001). Another aspect of interactivity that allows customer to examine products or view tangible
cues of services is called demonstrability. Following Huang (2003), demonstrability is defined as the extent to which
a site simulates or incorporates humanlike characteristics to present product information. Hence, this article
proposes perceived website interactivity, consisting two-way communication, synchronicity, controllability,
sociability, customizability, and demonstrability dimensions as independent variable for the proposed model.
172 Dahlan Abdullah et al. / Procedia Economics and Finance 37 (2016) 170 175

2.2 Customer perceived value

Although the concept of customer value and its importance have been discussed extensively in the literature (Kim,
2011), value measurement and optimization are still considered nascent and infancy in service research (Ostrom et al.,
2010). Zeithaml's (1988, p.142) definition of customer perceived value, the consumers overall assessment of the
utility of a product based on what is received and what is given receives the highest acceptance in literature.
However, researchers have proposed several additional components of benefit and sacrifice for online context (Lexhagen,
2008). The present article conceptualizes customer perceived value in terms of three components, namely, monetary
benefits, non-monetary benefits, and security and privacy. Since online booking platforms enable hotel customers to
compare prices and book hotel rooms at lower price, monetary benefits is conceptualized as monetary savings and
economic value (Chiu, Wang, Fang, & Huang, 2014). The non-monetary benefits is conceptualized as the benefits
gained by customer such as functional-convenience value, emotional value, social value, and control and freedom of
choice value (Sigala, 2006). The effect of security and privacy in online environment has been discussed in many
online shopping research. Hence, perceived security and privacy dimension is included in the proposed model and
conceptualized as customers perception of protection against security threats and control of their personal data
information in an online environment (Lallmahamood, 2007).

2.3 Website revisit intention

Many scholars have studied the determinants of website adoption in business research. However, successful
implementation of Internet technology depends on users continued usage intention rather than the initial adoption
(Chou, Min, Chang, & Lin, 2010). Because of that, the concept of website revisit intention receives managerial and
research attention (Ku & Chen, 2014). Following Reynolds and Ruiz de Maya (2013), the present article
conceptualizes website revisit intention as the customers likelihood to revisit the website. Even though, the study of
customers actual behavior is more ideal than the intentional behavior (Morosan & Jeong, 2008), in reality it is
difficult to obtain the cross-sectional setting (Sharma, Chen, & Luk, 2012). Nonetheless, the evidence for a strong
relationship between the intentional behavior and actual behavior can be found in many studies (Karjaluoto &
Leppniemi, 2013). Thus, the study of website revisit intention is considered justifiable.

3. Proposed conceptual model

As a result of the above discussions, a conceptual model is developed and illustrated in Figure 1. The conceptual
model was constructed on the basis of various research on website interactivity (Dholakia et al., 2001; Huang, 2003;
Kim, 2011; Macias, 2003; Mollen & Wilson, 2010; Yoo et al., 2010), customer perceived value (Chiu et al., 2014;
Hilton & Hughes, 2008; Lallmahamood, 2007; Meuter, Ostrom, Roundtree, & Bitner, 2000; Sigala, 2006; Sweeney
& Soutar, 2001; Zeithaml, 1988) and website revisit intention (Ku & Chen, 2014; Reynolds & Ruiz de Maya, 2013).
The conceptual model is supported by Stimulus-Organism-Response (S-O-R) theory (Jacoby, 2002). Stimulus refers
to factors that can influence an individuals internal states. Organism is defined as internal processes and structures
acting as mediator between stimulus and an individuals final actions, reactions, or responses. Response represents
an individuals final outcomes such as intention and behaviour (Chang, Eckman, & Yan, 2011).
Empirical data to support the proposed model could be collected from hotel customers who have visited hotel
websites. It is predicted that customers perception on website interactivity (second order construct) influences
customer perceived value (second order construct). The present article also proposes the customer perceived value
construct as mediator variable to study the indirect relationship between the perceived website interactivity and
website revisit intention. While Dholakia et al. (2001) suggested future research to study the link between perceived
website interactivity and revisit intention, van Noort et al. (2012) have shown significant relationship between
website interactivity and customers' cognitive, affective and behavioural responses. Hence, the following
proposition is developed:

Proposition 1: There is a positive relationship between perceived website interactivity and website revisit intention.
 Dahlan Abdullah et al. / Procedia Economics and Finance 37 (2016) 170 175 173

Fig. 1: Proposed conceptual model for interactive hotel website

Kim (2011) studied the relationship between web-interactivity dimensions and customer experiential values for
apparel websites. Similarly, Yoo et al. (2010) examined the linkage between three interactivity dimensions
(controllability, synchronicity, and bi-directionality) and consumers perceived value (utilitarian and hedonic values)
in e-shopping environment. The study indicated that bi-directionality influences hedonic value but synchronicity
affects utilitarian value. Thus, the following proposition is developed:

Proposition 2: There is a positive relationship between perceived website interactivity and customer perceived
value.

Kim, Galliers, Shin, Ryoo and Kim (2012) studied the effect of online shopping website qualities on perceived
value (utilitarian and hedonic values). The above study also examined the influence of the perceived value on
customer satisfaction and repurchase intention. It was found that both utilitarian and hedonic shopping value have
positive relationship on consumer repurchase intention. Hence, the following proposition is developed:

Proposition 3: There is a positive relationship between customer perceived value and website revisit intention.

Zhang, Lu, Gupta, and Zhao (2014) found a significant indirect relationship between perceived website
interactivity and customers intention to participate in social commerce website and therefore the following
proposition is developed:

Proposition 4: Customer perceived value mediates the relationship between perceived website interactivity and
online hotel booking intention.
174 Dahlan Abdullah et al. / Procedia Economics and Finance 37 (2016) 170 175

4. Conclusions and suggestions

The proposed conceptual model aims to extend knowledge on the role of perceived website interactivity in
influencing website revisit intention. Furthermore, the proposed model includes customer perceived value as a
mediator. It is expected that the more interactive the hotel website (as perceived by hotel customer), the higher the
customer perceived value. In consequence, it may contribute to the customer favourable behavioural response
(website revisit intention).
The proposed conceptual model adds value to both theory and practice. For the business world, the proposed
conceptual model may be considered imperative because it provides preliminary idea to hoteliers on the possible
factors that could lead to successful utilization of online booking technology. Hoteliers have invested huge amount
of money to develop hotel websites. Thus, the investment on the hotel website should provide favourable returns to
them in terms of yield per available room, yield per customer, sales revenue and profits. In addition, hoteliers may
gain benefits in terms of reduction in labour cost through elimination of few service employees in performing such
traditional booking. For hotel customers, hotel website allows them to search for hotel information, to reserve hotel
rooms, make advance payment, manage (change or cancel) their reservation, and complain or give feedback on their
service experience through hotel website without any intervention with service employees. Another advantage of
online booking via hotel website is the possibility of personalised experience. Guest profile entered into online
booking system allows the hotels to know the customers better and enables the hotels to ensure a perfect trip
customized to the customers unique needs and preferences. Besides, the guest profile makes booking process for
revisiting customers a simpler process and loyal customers may be given priority. In terms of transaction security,
hoteliers normally assure the customers that their website operates under the highest security standards.
Theoretically, the proposed model has its own novelty in terms of applications in the field of hotel industry.
Though scholars have studied the role of perceived website interactivity in online shopping context, most studies did
not differentiate the product or service category that the customer purchased online. Thus, the previous findings and
conclusions might be misleading because customers expectations on website interactivity features are vary across
product segments. For example, demonstrability features might not be important enough when customer purchases
homogeneous product such as electronic goods from online stores. However, for heterogeneous services like hotel
accommodation, customer might want to have more detailed information and demonstration (e.g. photos, videos,
virtual tour, 3D images etc.) to help them to make purchase (or online booking) decision. In the future, research on
the effect of each perceived website interactivity dimensions on customer perceived value dimensions is needed as it
could provide more detailed and meaningful conclusion. The conceptual model could also be customized and tested
with other predictors that might affect customer perceived value.

References
Abu Bakar, A. R., & Hashim, F. (2008). The determinants of online hotel reservations among university staffs. Communications of the IBIMA, 4.
Chang, H.-J., Eckman, M., & Yan, R.-N. (2011). Application of the Stimulus-Organism-Response model to the retail environment: the role of
hedonic motivation in impulse buying behavior. The International Review of Retail, Distribution and Consumer Research, 21(3), 233
Chiu, C. M., Wang, E. T. G., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers repeat purchase intentions in B2C e-commerce: The
roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24, 85114.
Chou, S.-W., Min, H.-T., Chang, Y.-C., & Lin, C.-T. (2010). Understanding continuance intention of knowledge creation using extended
expectationconfirmation theory: an empirical study of Taiwan and China online communities. Behaviour & Information Technology,
29(March 2015), 557570. Dholakia, R. R., Zhao, M., Dholakia, N., & Fortin, D. (2001). Interactivity and revisits to websites: A theoretical
framework. In American Marketing Association (pp. 108115). Research Institute for Telecommunication and Internet Marketing.
Guo, X., Ling, L., Yang, C., Li, Z., & Liang, L. (2013). Optimal pricing strategy based on market segmentation for service products using online
reservation systems: An application to hotel rooms. International Journal of Hospitality Management, 35, 274281.
Hilton, T., & Hughes, T. (2008). Co-production and co-creation using self service technology: The application of service-dominant logic. Otago
Forum 2 (2008) Academic Papers Paper, 2.
Huang, M. H. (2003). Designing website attributes to induce experiential encounters. Computers in Human Behavior, 19, 425442.
Jacoby, J. (2002). Stimulus-Organism-Response Reconsidered: An Evolutionary Step in Modeling (Consumer) Behavior. Journal of Consumer
Psychology, 12(1), 5157.
Kamaruzaman, K. N., & Handrich, Y. M. (2010). E-Commerce adoption in Malaysia: Trends, issues and opportunities. ICT Strategic Review
2010/2011, 89134.
Karjaluoto, H., & Leppniemi, M. (2013). Social identity for teenagers: Understanding behavioral intention to participate in virtual world
environment. Journal of Theoretical and Applied Electronic Commerce Research, 8(1), 116.
 Dahlan Abdullah et al. / Procedia Economics and Finance 37 (2016) 170 175 175

Kim, C., Galliers, R. D., Shin, N., Ryoo, J.-H., & Kim, J. (2012). Factors influencing Internet shopping value and customer repurchase intention.
Electronic Commerce Research and Applications, 11(4), 374387.
Kim, S. (2011). Web-interactivity dimensions and shopping experiential value. Journal of Internet Business, (9), 125.
Ku, E. C. S., & Chen, C.-D. (2014). Cultivating travellers revisit intention to e-tourism service: the moderating effect of website interactivity.
Behaviour & Information Technology, (February 2015), 114.
Lallmahamood, M. (2007). An Examination of Individuals Perceived Security and Privacy of the Internet in Malaysia and the Influence of This
on Their Intention to Use E-&RPPHUFH8VLQJ$Q([WHQVLRQRIWKH7HFKQRORJ\$FFHSWDQFH0RGHOJournal of Internet Banking and
Commerce, 12(3), 126. doi:Article
Lexhagen, M. (2008). Customer perceived value of travel and tourism websites.
Li-Ming, A. K., & Wai, T. B. (2013). Exploring consumers attitudes and behaviours toward online hotel room reservations. American Journal of
Economics, 3(5C), 611.
Macias, W. (2003). A preliminary structural equation model of comprehension and persuasion of interactive advertising brand web sites. Journal
of Interactive Advertising, 3(2), 3648.
Meuter, M. L., Ostrom, A. L., Roundtree, R. I., & Bitner, M. J. (2000). Self-service technologies: Understanding customer satisfaction with
technology-based service encounters. Journal of Marketing, 64(July), 5064.
Mollen, A., & Wilson, H. (2010). Engagement, telepresence and interactivity in online consumer experience: Reconciling scholastic and
managerial perspectives. Journal of Business Research, 63(9-10), 919925.
Morosan, C., & Jeong, M. (2008). Users perceptions of two types of hotel reservation Web sites. International Journal of Hospitality
Management, 27(2), 284292.
Nielsen.com. (2014). Southeast Asian consumers flock online to purchase products and services.
Ostrom, A. L., Bitner, M. J., Brown, S. W., Burkhard, K. A., Goul, M., Smith-Daniels, V., Rabinovich, E. (2010). Moving forward and
making a difference: Research priorities for the science of service. Journal of Service Research, 13(1), 436.
Reynolds, N., & Ruiz de Maya, S. (2013). The impact of complexity and perceived difficulty on consumer revisit intentions. Journal of
Marketing Management, 29(5-6), 625645.
Sanchez, J.-F., & Satir, A. (2005). Hotel yield management using different reservation modes. International Journal of Contemporary Hospitality
Management, 17(2), 136146.
Sharma, P., Chen, I. S. N., & Luk, S. T. K. (2012). Gender and age as moderators in the service evaluation process. Journal of Services
Marketing, 26(2), 102114.
Sigala, M. (2006). Mass customisation implementation models and customer value in mobile phones services: Preliminary findings from Greece.
Managing Service Quality, 16(4), 395420.
Steuer, J. (1992). Defining virtual reality: Dimensions determining telepresence. Journal of Communication, 42(4), 7393.
Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203
220.
Tso, A., & Law, R. (2005). Analysing the online pricing practices of hotels in Hong Kong. International Journal of Hospitality Management,
24(2), 301307.
Van Noort, G., Voorveld, H. a. M., & van Reijmersdal, E. a. (2012). Interactivity in brand web sites: Cognitive, affective, and behavioral
responses explained by consumers online flow experience. Journal of Interactive Marketing, 26(4), 223234.
Yoo, W.-S., Lee, Y., & Park, J. (2010). The role of interactivity in e-tailing: Creating value and increasing satisfaction. Journal of Retailing and
Consumer Services, 17(2), 8996.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value - A means-end model and synthesis of evidence. Journal of Marketing,
52, 222.
Zhang, H., Lu, Y., Gupta, S., & Zhao, L. (2014). What motivates customers to participate in social commerce? The impact of technological
environments and virtual customer experiences. Information Management, 51(8), 10171030.